Bond PP_Homework (Chapter 14)

On January 1, 2017, Spartan Corp. issued at 94, 4% bonds with a par value of $500,000, due in 5 years. Interest is payable semiannually on June 30 and December 31 of each year. In addition, Spartan incurred bond issue costs totaling $8,000. 4 years after the issue date, On January 1, 2021, Spartan calls the entire issue at 102 and cancels it.Spartan amortizes discounts/premiums, using the straight-line method.

Required:

Record the necessary journal entries on

(1)January 1, 2017.

(2)June 30 and December 31, 2017.

(3)January 1, 2021.